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Economic Analysis: Theory and Practice
 

Efficiency of agricultural investment projects under modern conditions of lending and State support, enhancing the possibilities of the latter

Vol. 14, Iss. 47, DECEMBER 2015

PDF  Article PDF Version

Received: 25 May 2015

Received in revised form: 21 July 2015

Accepted: 30 September 2015

Available online: 25 December 2015

Subject Heading: INVESTMENT ANALYSIS

JEL Classification: 

Pages: 10-19

Gubanova E.V. Financial University under Government of Russian Federation, Kaluga Branch, Kaluga, Russian Federation
el-gubanova@yandex.ru

Polishchuk A.P. Ministry of Agriculture of Kaluga Oblast, Kaluga, Russian Federation
msh-polyshuk@adm.kaluga.ru

Subject The article studies the conditions and opportunities to attract financial resources by agricultural producers to finance investment projects under current circumstances.
     Objectives The aim is to analyze the impact of investment loans and State support on financial and economic performance of investment projects focused on agricultural production development, and to review the possibilities of stirring up investment activities in the agro-industrial complex through optimization of the State support mechanism.
     Methods The methodology includes widespread quantitative methods that apply the discounted evaluation criteria (NPV, PI, IRR, MIRR, DPP, etc). The calculations for the business plan use three software products, two of which focus on justifying the technological parameters of the production program, and the third one (the software product of PRO-INVEST group of companies ‘System of Business Plan Development and Analysis of Project Expert Investment Projects’, version 7.17 HOLD) is used for planning the financial and credit policy and financial and economic evaluation of the project. Conclusions rest on comparison of the obtained results.
     Results The outcomes may be useful for federal and regional authorities as theoretical and methodological bases to develop proposals on optimizing the system of State support to the agrarian and industrial complex.
     Conclusions The existing conditions are not favorable for implementing investment projects that involve bank loans. However, there are real opportunities to stir up investment processes in the agro-industrial complex through optimizing the State support mechanism.

Keywords: investment, project, agriculture, subsidies, credit

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